The construction equipment industry has sought cut in excise duty from the government in the wake of a severe drop in demand due to slow execution of infrastructure projects.
Indian Construction Equipment Manufacturers Association (ICEMA) has asked the government to implement relief measures as the "industry has already witnessed a negative growth of over 30 per cent during the past two years and is recording new lows every month in sale of equipments."
"The ICEMA has demanded excise duty cut from the government on earthmovers and construction equipment in order to help survive the adverse scenario," ICEMA President Amit Gossain told PTI.
He said the industry has been playing a pivotal role in building infrastructure but has been hit due to a sharp decline in execution of infrastructure projects in the past two-three years.Land acquisition issues, absence of environmental clearances and severe deterioration in financial health of companies in the space has hit the sector's growth and many firms have already approached the corporate debt restructuring ( CDR) cell.
"The severe slowdown in demand has led to glut of inventory of equipments with the manufacturers and its authorised dealers. It has now reached a stage that is forcing the industry players to resort to periodic shutdown at their manufacturing facilities, leading to low morale and sombre mood among the workforce," he said.
Gossain is also the Chairman of CII Committee on Solid Waste Management.
News Source : http://articles.economictimes.indiatimes.com/2014-02-16/news/47379787_1_excise-duty-infrastructure-projects-construction-equipment
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